By Delegates
Hanshaw (Mr. Speaker) and Miley
By Request of the Executive

[Passed May 20, 2019; in effect ninety days from
passage.]

AN ACT to amend and
reenact §11-13-3f of the Code of West Virginia, 1931, as amended; to amend and
reenact §11-13F-1, §11-13F-2 and §11-13F-3 of said code; to amend and reenact
§11-24-11 of said code; to amend and reenact §24-2A-5 of said code; and to
amend and reenact §24-3-2 of said code, all relating to reduced rates for
low-income residential customers of privately owned sewer and combined water
and sewer utilities; providing for application for reduced rates; updating
definitions; authorizing certain tax credits for cost of using reduced rates;
and providing for retroactive effective date.

by this article, the cost
of providing electric or natural gas or water utility service, or any
combination of electric, natural gas or water utility services, at reduced
rates to qualified low-income residential customers which has not been
reimbursed by any other means.

(b) For tax years beginning
on or after January 1, 2019, there shall be allowed as a credit against the tax
imposed by this article, the cost of providing sewer service or sewer and water
service at reduced rates to qualified low-income residential customers which
has not been reimbursed by any other means.

(c) The tax commissioner
may prescribe such regulations as may be necessary to carry out the purposes of
this section, of §11-13F-1 et seq. of this code and of §11-24-11 of this
code.

In order to reimburse
public utilities for the revenue deficiencies that they incur in providing
special reduced electric or natural gas, water, or sewer utility rates to low-income
residential customers in accordance with the provisions of §24-2A-1 et seq. of this code, there is hereby provided a business and occupation
tax credit for reducing electric, natural gas, water, or sewer utility rates
for low-income residential customers.

§11-13F-2. Definitions.

(a) Any term used in this
article shall have the same meaning as when used in a comparable context in §11-13-1 et seq. of this code, unless a different meaning is clearly required by the
context of its use or by definition in this article.

(b) For purposes of this
article, the term:

(1) "Eligible
taxpayer" means a utility which has provided electric or natural gas
service, or both electric and natural gas
service; or water or sewer service, or both water and sewer service, to qualified low-income residential customers at
special reduced rates.

(2) "Cost of providing
utility service at special reduced rates" means the amount certified by
the Public Service Commission under the provisions of §24-2A-2 of this code as
the revenue deficiency incurred by a public utility in providing special
reduced rates for electric, natural gas,
sewer, or water utility service as required by §24-2A-1 or approved pursuant to
§24-2A-5 of this code.

(3) "Special reduced
rates" means the rates ordered by the Public Service Commission under the
authority of §24-2A-1 or §24-2A-5 of this
code.

(a) There shall be allowed
to any eligible taxpayer a credit against the business and occupation taxes
imposed by §11-13-1 et seq. of this code, for reducing electric and
natural gas utility rates. The amount of the credit available to any eligible
taxpayer shall be equal to its cost of providing electric or natural gas
service, or both, at special reduced rates as
certified by the Public Service Commission under the provisions of §24-2A-2 of
this code to qualified residential
customers, less any reimbursement of said cost which the taxpayer has received
through any other means.

(b) For tax years beginning
on or after January 1, 2019, there shall be allowed to any eligible taxpayer a
credit against the business and occupation taxes imposed by §11-13-1 et seq.
of this code, for reducing rates for providing electric, natural gas, sewer or
water service, or any combination of electric, natural gas, water or sewer
services. The amount of the credit available to any eligible taxpayer shall be
equal to its cost of providing utility service at special reduced rates to
qualified residential customers, less any reimbursement of said cost which the
taxpayer has received through any other means.

ARTICLE 24. CORPORATION
NET INCOME TAX.

§11-24-11. Credit for
reducing electric or natural gas or water utility rates for low-income
residential customers.

(a) General. -- A
credit shall be allowed against the primary

tax liability of an
eligible taxpayer under this article for the cost of providing electric or
natural gas or water utility service, or any combination of electric, natural
gas or water utility services, at special reduced rates to qualified low-income
residential customers which has not been reimbursed by any other means.

(2) “Cost of providing
electric or natural gas or water or sewer utility service, or any combination
of electric, or natural gas, or water, or sewer utility services, at special
reduced rates” means the amount certified by the Public Service Commission
under the provisions of§24-2A-2 of this code, as the revenue deficiency
incurred by a public utility in providing special reduced rates for electric or
natural gas or water or sewer utility service, or any combination of electric,
natural gas or water or sewer utility services, as required by §24-2A-1 of this
code or authorized by §24-2A-5 of this code.

(3) “Special reduced rates”
means the rates ordered or approved by the Public Service Commission under the
authority of §24-2A-1 or §24-2A-5 of this code.

(4) “Qualified low-income
residential customers” means those utility customers eligible to receive
electric, or natural gas, or water or sewer utility service, or any combination
of electric, natural gas, or water or sewer utility services, under special
reduced rates.

(c) Amount of credit.
—

(1) For tax years beginning
prior to January 1, 2019, the amount of the credit available to any eligible
taxpayer shall be equal to its cost of providing electric, or natural gas, or
water utility service, or any combination of electric, natural gas, or water
utility services, at special reduced rates to qualified residential customers,
less any reimbursement of said cost which the taxpayer has received through any
other means.

(2) For tax years beginning
on or after January 1, 2019, the amount of the credit available to any
eligible taxpayer shall be equal to its cost of providing electric, or natural
gas, or water or sewer utility service, or any combination of electric, natural
gas, water or sewer utility services, at special reduced rates to qualified
residential customers, less any reimbursement of said cost which the taxpayer
has received through any other means.

(d) When credit may be
taken. -- An eligible taxpayer may claim a credit allowed under this
section on its annual return for the taxable year in which it receives
certification of the amount of its revenue deficiency from the Public Service
Commission.

Notwithstanding the
provisions of §11-24-16 of this code to the contrary, no credit may
be claimed on any declaration of estimated tax filed for such taxable year
prior to July 1 of such taxable year. Such credit may be claimed on a
declaration or amended declaration filed on or after that date but only if the
amount certified will not be recovered by application of the business and
occupation tax credit allowed by §11-13-3f of this code. In such event, only
that amount not recovered by that credit may be considered or taken as a credit
when estimating the tax due under this article. In no event may the eligible
taxpayer recover more than 100 percent of its revenue deficiency as certified
by the Public Service Commission.

(e) Application of
credit. -- The credit allowable by this section for a taxable year is not
subject to the 50 percent limitation specified in §11-24-9 of this
code. Notwithstanding the provisions of §11-13F-4 of this code, any unused credit may be
carried over and applied against business and occupation taxes in the manner
specified in §11-13F-5 of this code.

(f) Copy of
certification order. -- A copy of a certification order from the Public
Service Commission shall be attached to any annual return under this article on
which a credit allowed by this section is taken.

§24-2A-5. Special rates
for certain water, sewer, or combined water and sewer utility customers.

(a) The commission may
authorize a privately owned water, sewer or combined water and sewer utility to
voluntarily implement a rate design featuring reduced rates and charges for
service for residential utility customers receiving:

(4) Assistance from the
Supplemental Nutrition Assistance Program (SNAP) if they are sixty years of age
or older.

(b) The special reduced
rate offered by each water, sewer, or combined water and sewer utility to its
eligible customers shall be a percentage less, which shall be approved by the
commission, than the rate that would be applicable to such customers if they
were not receiving any of the four forms of assistance that confer eligibility
for the special reduced rates approved by the commission: Provided, That
such rate reduction shall not exceed 20 percent of the rate that would be
otherwise applicable.

(c) Before any individual
may qualify to receive the special reduced rates, the following requirements
must be met:

(1) The special reduced
rates may apply only to current customers or to those persons who subsequently
become customers in their own right. If an SSI, TANF, TANF-UP or SNAP recipient
is living in a household that is served under the name of a person who is not
an SSI, TANF, TANF-UP or SNAP recipient, that service may not be changed or
have been changed subsequent to July 1 , 2011, to the name of the SSI, TANF,
TANF-UP or SNAP recipient in order to qualify for service under the special
reduced rates.

(2) The burden of proving
eligibility for the special reduced rates shall be on the customer requesting
such rates. The Department of Health and Human Resources shall establish by
rules and procedures:

(A) To inform persons
receiving any of the four forms of assistance that confer eligibility for the
special reduced rates about the availability of the special reduced rates;

(B) To assist applicants
for the special reduced rates in proving their eligibility therefor; and

(C) To assist water, sewer,
or combined water and sewer utilities offering the special reduced rates in
determining on a continuing basis the eligibility therefor of persons receiving
or applying for such rates.

The commission shall
establish rules and procedures for the application for and provision of service
under the special reduced rates and for the determination and certification of
revenue deficiencies resulting from the special reduced rates.

(3) In order to provide
each eligible residential utility customer the special reduced rates, each
utility providing the special reduced rates shall credit against amounts
otherwise owed by each customer an amount equal to the difference between the
total amount that each customer was actually billed during the previous month
and the total amount that each customer would have been entitled to be billed
under the special reduced rates. Each credit shall be fully reflected on the
first bill issued to each customer after approval of each customer's
application for the special reduced rates, except in cases where the interval
between the approval and the issuance of the next bill is so short that it is
administratively impracticable to do so, in which case, such credits shall be
fully reflected on the second bill issued to each customer after approval of
that customer's application. If the interval between the approval and the
issuance of the next bill is 15 days or more, it may not be deemed
administratively impracticable to reflect the credit on the customer's first
bill.

ARTICLE 3. DUTIES AND
PRIVILEGES OF PUBLIC UTILITIES SUBJECT TO REGULATIONS OF COMMISSION.

§24-3-2. Discrimination
prohibited.

No public utility subject
to the provisions of this chapter shall, directly or indirectly, by any special
rate, rebate, drawback or other device or method, charge, demand, collect or
receive from any person, firm or corporation, a greater or less compensation,
for any service rendered or to be rendered, than it charges, demands, collects,
or receives from any other person, firm or corporation for doing a like and
contemporaneous service under the same or substantially similar circumstances
and conditions.

It shall be unlawful for
any public utility subject to the provisions of this chapter to make or give
any undue or unreasonable preference or advantage to any particular person,
company, firm, corporation or locality, or any particular character of traffic
or service, in any respect whatsoever, or to subject any particular person,
firm, corporation, company or locality, or any particular character of traffic
or service, to any undue or unreasonable prejudice or disadvantage in any
respect whatsoever.

Nothing in this section
shall be construed to prevent the commission from:

(a) Authorizing or
requiring any rate design consistent with the purposes and policies set forth
in §24-2A-1
et seq. of this code; or

(b) Authorizing a private
water, sewer, or combined water and sewer utility to voluntarily implement a
rate design featuring reduced rates and charges for service to qualifying
low-income residential customers.